Dell has announced that it will buy Perot Systems, an IT services provider, in a deal worth US$3.9 billion as the company is looking to diversify away from its consumer PC business core and to better position itself from rivals like HP.
Under the deal, Dell would acquire all outstanding common stock of Perot Systems for $30 per share, a 68 percent premium to its closing price on Friday of $17.91. and is to be paid in cash. It is expected to be completed in the November – January fiscal quarter but will not add to Dell’s earnings until 2012. The deal still needs to be approved by the regulators.
“We consider Perot Systems to be a premium asset with great people that enhances our opportunities for immediate and long-term growth,” CEO of Dell, Michael Dell, said.
“This significantly expands Dell’s enterprise-solutions capabilities and makes Perot Systems’ strengths available to even more customers around the world. There will be efficiencies from combining the companies, but the acquisition makes such great sense because of the obvious ways our businesses complement each other.”
Founded by one-time presidential candidate Ross Perot Jr., who is the chairman of the company, the company provides IT services and business solutions to companies in the health care, manufacturing, banking and insurance sectors, and has customers located in North America, Europe and Asia. Perot is expected to be considered to have a seat on the board of directors.
“This transaction represents a great opportunity for our company and our associates. Today’s announcement is the next step in formalizing a relationship that has flourished for some time. When my father founded Perot Systems he envisioned a global information-technology leader,” Perot said.
“The new, larger Dell builds on that promise and its own successes by taking Perot Systems’ expertise to more customers than ever.”